LISTED INVESTMENT COMPANIES High Yield Helps

LISTED INVESTMENT COMPANIES
QUANTITATIVE RESEARCH
High Yield Helps Boost a LICs Appeal
Listed investment companies are essentially listed equivalents of managed
funds but have higher levels of transparency, tend to charge lower fees than
its unlisted counterparts and are closed end funds. This means investors buy
and sell the LIC vehicle so the LIC managers are not under pressure to meet
redemptions. A key risk is that LICs cannot be redeemed for its underlying
face value and share prices may deviate significantly from its underlying NTA.
Share prices are at 27th June 2014.
27 June 2014
Analyst:
Kien Trinh
Phone:
(+61 3) 9242 4027
Email:
[email protected]
This report compares 31 different LICs and identifies those that are most attractive on a number of quantitative measures including
price to NTA, dividend yield, NTA growth, and total returns. The key criterion in the evaluation of a LIC is its track record. Those with
the best long-term performances (measured by total return, dividends and NTA growth) are the ones that are likely to give the best
future returns. In the Appendix, we provide a list of top 20 holdings and a historical price to NTA chart for each LIC.
Key Ideas:


Most Attractive – Those that are most attractive for the
quarter are Carlton Investments (CIN), Cadence Capital
(CDM), Whitefield (WHF), and AMCIL (AMH). Both
Flagship Investments (FSI) and Contango Microcap (CTN)
also appear undervalued. For international exposure, we
recommend Magellan Flagship (MFF). The LICs that
appear most expensive are Djerriwarrh (DJW), WAM
Active (WAA), Aberdeen Leaders (ALR), ING Private Equity
(IPE) and Platinum Capital (PMC).

Strongest NTA Growth – The LICs with the strongest
NTA growth over the year have Hunter Hall Global
(HHV), Templeton Global (TGG), Whitefield (WHF) and
Mirrabooka (MIR). However more importantly, over the
longer term, Cadence Capital (CDM), Magellan Flagship
(MFF) and Carlton Investments (CIN) have achieved
the strongest growth in NTA.

Premiums to historical NTA – The few LICs which
are currently trading below historical levels are
Flagship Investments (FSI) and Naos Emerging
Opportunities (NCC). Note however that NCC was
listed in February 2013. Those that are trading at a
large premium to their historical average NTA are ING
Private Equity (IPE), WAM Active (WAA), Westoz (WIC)
and Australian Leaders (ALF). The strongest share
price performers over the last quarter have been WIC,
MLT, IPE and KAT.
Dividend Yield – The average net yield for LICs has risen
slightly to 5.1% over the quarter. The highest yielding
LICs are currently Westoz (WIC; net yield 8.0%), WAM
Active (WAA; 7.5%), Australian Leaders (ALF; 7.0%), and
Cadence Capital (CDM; 6.8%). These yields are fully
franked. Note that the yield for IPE is unusually high
because the fund is progressively offloading surplus cash
from recent asset sales.
The trend in the median premium to NTA (pre-tax) of LICs since June 2000 is shown in the chart below. The median
discount to NTA is now currently at 4%, trading above its historical average discount of 6%.
LICS WEIGHTED AVERAGE PRICE TO NTA ‐ 3 MTH EMA
%
%
10
10
5
5
0
0
‐5
‐5
Historical Average
Jun‐14
Jun‐13
Dec‐13
Jun‐12
Dec‐12
Jun‐11
Dec‐11
Jun‐10
Dec‐10
Jun‐09
Dec‐09
Jun‐08
Dec‐08
Jun‐07
Dec‐07
Jun‐06
Dec‐06
Jun‐05
Dec‐05
Jun‐04
Dec‐04
Jun‐03
Dec‐03
Jun‐02
‐20
Dec‐02
‐20
Dec‐01
‐15
Jun‐01
‐15
Jun‐00
‐10
Dec‐00
‐10
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
1
27 June 2014
Listed Investment Companies
WHY BUY LICS?
For conservative investors wishing to match or possibly beat the long-term returns of the All Ordinaries Index,
especially those with a limited amount of capital, a number of LICs can provide the necessary spread of
investments. Although many investors focus on whether a LIC is trading at a discount or premium to net
tangible asset backing (NTA), in reality, the better performing LICs trade at a premium and the poor performers
often trade at deep discounts.
The removal of trailing commissions from unlisted mutual funds will provide a renewed focus on the listed
investment funds sector. As closed end funds, the LIC managers do not have to sell stock at the bottom of bear
markets to meet redemptions when prices are low and, conversely, they do not need to buy stock when prices
are high. This allows a LIC to concentrate on investment selection without having to factor in the consequences
of money leaving the fund unexpectedly (as in the case of a managed fund). In addition, LICs have the potential
to pass on franking credits to shareholders.
Most of the better performing LICs have long-term investment horizons, which provide stability and steady
returns. Management expense ratios for the larger established LICs (typically less than 0.3%) are generally
much lower than those of unlisted funds. Usually this is a result of fewer transactions with long-term buy and
hold strategies. LICs are also internally managed which results in lower costs. Generally, funds which focus on
smaller or emerging companies tend to incur higher costs as a result of the requirement for additional in-house
research. Investors should be aware that being listed means that LICs cannot be redeemed for its underlying
share face value and share prices may deviate significantly from its underlying NTA.
The most important criterion in the evaluation of a LIC is its track record. Those with the best long-term
performances (measured by total return, dividend and NTA growth) are the ones likely to give the best future
returns. However, given the lack of track record of the newer LICs, a closer focus on investment philosophy, NTA
backing and the investment manager’s skill are most important in making a valuation call. LICs may provide
attractive income investments but clients need to be mindful that a number of LICs (eg DJW) rely on covered
call strategies in order to boost dividend yields.
LICs that rely on a theme are unlikely to out-perform the market over the long term, but can provide strong
returns over a short to medium term time frame. Gearing (e.g. Aberdeen Leaders) is potentially a positive when
markets are moving higher but can be a negative when bear markets take hold.
Unlike managed funds, LICs provide a post-tax calculation which includes realised capital gains taxed at the
corporate rate. As a result, LICs are disadvantaged as franking benefits are usually not incorporated in the
performance calculations. In our report, we will be using pre-tax NTA figures to provide reporting consistency
with unlisted managed funds.
GLOBAL AND THEME LICS
Templeton Global (TGG), Platinum Capital (PMC), Magellan Flagship Fund (MFF) and Hunter Hall Global (HHV)
have a global spread of investments and may be appropriate for investors wishing to diversify beyond Australia.
Of these, Platinum has the ability to apply derivatives to protect against loss. For Asian market exposure, AMP
Capital China Fund (AGF) provides exposure to China A shares. Djerriwarrh (DJW) specialises in purchasing local
option stocks and writing call options against them, while Contango (CTN) mainly targets domestic microcaps.
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
2
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
INVESTMENT FOCUS:
Code
Company
Manager
Focus
Benchmark
Domestic – Large*
AFI
Australian Foundat.
Internal
ARG
Argo Investments
Internal
AUI
Australian United In
Internal
BKI
BKI Investment Ltd
Internal
CIN
Carlton Investments
Internal
DJW
Djerriwarrh
Internal
DUI
Diversified United
Internal
MLT
Milton Corporation
Internal
WAM
WAM Capital Limited
Wilson Asset Mgt.
International
Large/mid cap, value, active, long only,
use of options to enhance income
Large/mid cap, balanced, active, long
only
Large/mid cap, balanced, passive, long
only
Large/small, balanced, passive, long only
Large blue chips, balanced, active, long
only
Large, value, active, long only, use of
options to enhance income
Large, balanced, passive, long only
Large/mid/small cap, balanced, active,
long only, also invests in fixed interest,
property and mortgages
Mid/small cap, undervalued growth
opportunities, active, arbitrage
ASX200 Accum.
All Ords Accum.
ASX300 Accum.
ASX300 Accum.
ASX200 Accum.
ASX50 Accum.
ASX300 Accum.
All Ords Accum.
All Ords Accum.
Domestic – Small*
ALF
Australian Leaders
Watermark Funds
Mgt
ALR
Aberdeen Leaders
Aberdeen Asset Mgt
AMH
AMCIL Limited
Internal
CAM
Clime Capital
Clime Asset Mgt
CDM
Cadence Capital
Cadence Asset Mgt
CTN
Contango Microcap
Contango Asset Mgt.
CYA
Century Australia
Perennial Value Mgt
IBC
Ironbark Capital Ltd
Kaplan Funds Mgt
KAT
Katana Capital
Katana Asset Mgt.
MIR
Mirrabooka Invest.
Internal
WAA
WAM Active
Wilson Asset Mgt.
WAX
WAM Research Ltd
Wilson Asset Mgt.
WHF
Whitefield Ltd
White Funds Mgt.
WIC
Westoz Inv Ltd
Westoz Funds Mgt.
FSI
Flagship Investments
EC Pohl & Co Pty Ltd.
NCC
Naos Emerging
Opportunities
Naos Asset Mgt.
At least 70% of the fund in the ASX100,
value, long/short
Large/mid cap blue chips, value, active,
long only, may use leverage
Large/mid/small, value, active, long only
Large/mid/small, value, quantitative,
active, long only
Large/mid/small cap, value/technical,
active, long/short, trading; may use
leverage up to 40%
Small cap, balanced, active, long only;
typically holds 80-120 stocks
Large, value, active, long only, holds 2550 stocks
Large/mid cap, hybrids, long only; may
use derivatives
Large/mid/small, Value, style neutral,
technical, long only; may use trading
Mid/small cap, value, active, long only;
holds 50-80 stocks
absolute returns, arbitrage opportunities,
long/short, may hold cash
Mid/small cap, undervalued growth
opportunities, active, long
Large, style neutral, balanced, active,
long only; mostly in industrial stocks
WA stocks outside top 100, value, long
only, may use derivatives
Small/mid cap bias; quality, quant
process; performance fee only
Invest outside ASX100; emerging quality;
value oriented; holds 0-15 stocks.
All Ords Accum.
ASX200 Accum.
ASX200 Accum.
All Ords Accum.
All Ords Accum.
All Ords Accum.
ASX300 Accum.
ASX300 Accum.
All Ords Accum.
Midcap 50%; Small
Accum (50%)
UBS Bank Bill Index
All Ords Accum.
ASX200 Accum.
Positive return (p.a)
All Ords Index.
Small Ords Accum.
International
China A shares; large, balanced, active,
long only
Global, mid/small cap, value, active, long
only
Global (US focus), large, value, active,
long only
AGF
Amp Capital China
AMP Capital
HHV
Hunter Hall Global
Hunter Hall Invest.
Mgt
MFF
Magellan Flagship
Magellan Asset Mgt
PMC
Platinum Capital Ltd
Platinum Asset Mgt
Large, absolute return, active, long/short
TGG
Templeton Global
Templeton Global
Equity
Global, large, value, active, long only
ING Investment Mgt
invests in about 16 private equity funds
CTIC 300 TR Index
(AUD)
MSCI World Accum
(AUD)
MSCI World Price
Index (AUD)
MSCI All Country
World Net
MSCI All Country
World (AUD)
Specialist
IPE
ING Private Equity
Positive return (p.a)
*based on LIC market cap and not investment focus
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
3
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
SUMMARY TABLE:
The table below provides a summary of the LICs in descending order of long term NTA growth.
Code
Company
Price ($)
27.06.14
Pretax
NTA
($)
Prem/Disc
to NTA
(%)
Approx.
DPS (c)
Net
Yield
(%)
Gross
Yield
($)
Franking
(%)
5 Yr
Total
Return
(%
p.a)
5 Yr
NTA
Growth
(%
p.a)
Market
Cap
($M)
Domestic – Large*
CIN
Carlton Investments
27.00
30.74
-12.2
95.0
3.5
5.0
100
17.2
15.0
711
WAM
WAM Capital Limited
1.94
1.79
7.9
12.5
6.5
9.2
100
20.8
13.4
661
MLT
Milton Corporation
4.64
4.40
5.5
16.8
3.6
5.2
100
12.1
12.6
2,902
AFI
Australian Foundat.
6.17
5.94
3.9
22.0
3.6
5.1
100
10.5
12.1
6,389
DUI
Diversified United
3.62
3.85
-6.0
14.0
3.9
5.5
100
11.4
12.0
619
AUI
Australian United In
8.20
8.70
-5.7
30.5
3.7
5.3
100
11.5
11.8
888
ARG
Argo Investments
7.66
7.46
2.7
27.0
3.5
5.0
100
8.0
11.5
5,049
BKI
BKI Investment Ltd
1.67
1.66
0.6
6.9
4.1
5.9
100
13.7
11.5
873
DJW
Djerriwarrh
4.75
3.84
23.7
26.0
5.5
7.8
100
9.5
9.8
1,023
1.38
6.2
10.0
6.8
9.8
100
27.6
18.3
255
Domestic – Small*
CDM
Cadence Capital
1.47
AMH
AMCIL Limited
0.95
0.96
-1.0
3.0
3.2
4.5
100
14.6
14.6
217
MIR
Mirrabooka Invest.
2.70
2.42
11.6
10.0
3.7
5.3
100
15.9
14.6
371
ALF
Australian Leaders
1.73
1.51
14.2
12.0
7.0
9.9
100
20.6
13.6
399
WHF
Whitefield Ltd
4.12
4.44
-7.2
17.0
4.1
5.9
100
14.4
13.6
314
WAX
WAM Research Ltd
1.12
1.08
3.7
7.3
6.5
9.2
100
20.9
12.6
158
KAT
Katana Capital
0.95
1.03
-7.4
5.0
5.3
7.5
100
16.2
10.7
33
FSI
Flagship Investments
1.59
1.78
-10.5
6.8
4.2
6.1
100
11.2
10.5
39
CAM
Clime Capital
0.98
1.06
-8.0
4.3
4.4
6.3
100
17.4
8.8
79
WAA
WAM Active Limited
1.27
1.06
20.2
9.6
7.5
10.7
100
16.5
8.2
44
CYA
Century Australia
0.89
0.94
-5.9
4.5
5.0
7.2
100
7.3
7.2
70
ALR
Aberdeen Leaders
1.25
1.20
4.2
6.0
4.8
6.9
100
7.9
7.0
77
IBC
Ironbark Capital Ltd
0.55
0.59
-7.4
4.0
7.3
10.4
100
11.3
6.8
86
CTN
Contango Microcap
1.02
1.22
-16.1
8.0
7.8
8.7
25
12.0
5.4
160
WIC
Westoz Inv Ltd
1.31
1.35
-3.2
10.5
8.0
11.5
100
9.6
2.1
168
NCC
Naos Emerg Opp
1.05
1.20
-12.5
5.3
5.0
7.1
100
n.a
n.a
37
-0.8
2.0
1.4
1.4
0
22.1
18.3
505
International Focus
MFF
Magellan Flagship
1.43
1.44
TGG
Templeton Global
1.29
1.37
-5.8
2.5
1.9
2.7
100
13.4
9.9
258
HHV
Hunter Hall Global
1.00
1.18
-15.2
6.0
6.0
6.2
6
11.6
9.1
189
PMC
Platinum Capital Ltd
1.75
1.61
8.4
8.0
4.6
6.5
100
8.4
8.8
403
AGF
Amp Capital China
0.67
0.83
-19.9
4.3
6.4
6.4
0
-5.3
-3.2
251
0.50
0.45
11.4
6.0
12.0
17.1
100
19.3
-2.6
68
Specialist Focus
IPE
IPE Ltd
All Ords. Accumulation Index
12.2
Arithmetic Average
-0.7
5.2
7.1
13.6
Weighted Average
2.8
4.0
5.6
11.5
NB: dividends are approximate and based on most recent distributions.
NAV is used for AGF instead of NTA. Note that WIC and NCC do not have a full five year history.
Returns and NTA growth are for the period ending 31st May 2014
*based on LIC market cap and not investment focus
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
4
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
DIVIDEND YIELD
The following chart displays the LICS approximate annual dividend yield based on the trend in dividend payments
over the last year. Although dividends are an important feature of investing, clients should note that there is no
guarantee these dividends will continue into the future. Despite this, most LICs were able to increase dividends
during the last half as a result of improving market conditions. Note that the yield for IPE is high because the fund
is progressively offloading its surplus cash balance from recent asset sales. Also, the chart below does not account
for the special dividends paid by MIR, MLT and AMH.
DIVIDEND YIELD (%)
18
Franking Credit
16
Net Yield
14
Dividend Yield (%)
12
10
8
6
4
2
MFF
TGG
CIN
AMH
AFI
ARG
MLT
AUI
MIR
BKI
DUI
FSI
WHF
HHV
AGF
CAM
ALR
PMC
CYA
NCC
IBC
KAT
CTN
DJW
WAX
WAM
ALF
CDM
WAA
IPE
WIC
0
PREMIUM/ DISCOUNT TO NTA
The table below compares the premium/ discount of our universe of LICs to their five year historical averages. The
few LICs which are currently trading below historical levels are FSI and NCC. Note that NCC was only listed in
February 2013 but the Naos Emerging Companies Long Short Equities Fund (managed fund structure) has
outperformed the Small Ordinaries Accum. Index by 21% over the five year period to 31st May 2014. Those that
are trading at a large premium to their historical average NTA are IPE, WAA, WIC and ALF. The strongest share
price performers over the last quarter were WIC, MLT, IPE and KAT.
SHARE PRICE PREMIUM (DISCOUNT) TO PRE-TAX NTA
30%
30%
20%
Historical Average
20%
Current Price to NTA
10%
10%
0%
0%
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
HHV
NCC
FSI
CIN
CAM
IBC
KAT
DUI
WHF
CYA
TGG
AUI
WIC
MFF
AMH
BKI
ARG
AFI
WAX
ALR
-50%
MLT
-50%
CDM
-40%
WAM
-40%
PMC
-30%
IPE
-30%
MIR
-20%
ALF
-20%
DJW
-10%
WAA
-10%
5
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or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
TOTAL RETURN AND NTA GROWTH
The following charts compare the one and five year total return with the underlying NTA growth for the LICs in our
universe. Over the year to May 2014, most LICs have been able to outperform the All Ordinaries Accumulation
Index (shaded in green below). Opportunities exist when the total return does not match the corresponding growth
in NTA over the year. These include CTN, NCC, ALR, IBC and MFF. The LICs with the strongest NTA growth over
the year are HHV, TGG, WHF and MIR. Those with the weakest NTA growth include AGF, CAM, IBC and WAA.
TOTAL RETURN - ONE YEAR (%)
%
%
50
50
IPE
Total Return (%)
NCC
10
ALR
10
IBC
CAM
20
CTN
AFI
AMH
MFF
DJW
XAOAI
ARG
BKI
MIR
MLT
DUI
AUI
CDM
20
CYA
WAA
WAM
30
WAX
FSI
CIN
ALF
WHF
WIC
30
KAT
TGG
PMC
40
HHV
Total Return and NTA Growth (%)
40
NTA Growth (%)
0
AGF
0
-10
ALR
AGF
IBC
CAM
CTN
NCC
AMH
AFI
MFF
DJW
XAOAI
BKI
ARG
MIR
MLT
AUI
DUI
CYA
CDM
WAA
WAX
WAM
FSI
CIN
ALF
WHF
KAT
WIC
HHV
TGG
IPE
PMC
-10
Over the five year period to 31st May 2014, the best performers have been CDM, MFF, WAX and WAM. In contrast,
over this period, the LICs that have experienced the strongest NTA growth have been CDM, MFF and CIN. The
worst performing domestic funds were CYA, ALR, and ARG. The poor returns from the Chinese sharemarket
continue to have a negative impact on AGF. The proportion of LICs which have outperformed the All Ordinaries
Accumulation Index over the last five years has fallen from 62% to 50% in the last three months.
COMPOUND RETURN - FIVE YEARS (% P.A)
%
%
35
35
CDM
ARG
CYA
15
ALR
10
PMC
DJW
WIC
AFI
FSI
DUI
IBC
AUI
HHV
CTN
TGG
XAOAI
MLT
WHF
15
20
BKI
AMH
KAT
MIR
CIN
WAA
IPE
20
25
CAM
WAM
ALF
MFF
10
5
5
0
0
-5
-5
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
CYA
ALR
ARG
PMC
DJW
WIC
AFI
FSI
IBC
DUI
AUI
HHV
MLT
CTN
TGG
XAOAI
BKI
WHF
AMH
MIR
KAT
CIN
WAA
IPE
CAM
ALF
WAM
MFF
WAX
CDM
-10
AGF AGF
Total Return vs NTA Growth (% p.a)
25
NTA Growth (%)
30
WAX
30
Total Return (%)
-10
6
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
PREMIUM TO NTA VS NTA GROWTH
In the chart below, the large domestic LICs are represented by red markers. The most attractive LICs are the ones
positioned on the lower right corner as these are the ones which are trading at a significant discount to NTA
despite achieving above sector growth in NTA over the last five years. The breakdown in correlation between NTA
growth and price to NTA over the last few months has led to some attractive opportunities. Those that appear most
attractive on our list are CDM, MFF, CIN, AMH and WHF. Note that CIN has a significant exposure to Amalgamated
Holdings. The LICs that appear most expensive are DJW, ALR, WAA, IPE and PMC.
PREMIUM TO NTA VS FIVE YEAR NTA GROWTH (% P.A)
30%
25%
y = 0.4221x - 0.0457
R² = 0.0401
DJW
WAA
20%
PREMIUM TO NTA
15%
10%
ALF
MIR
IPE
PMC
5%
CDM
AFI
BKI
0%
AMH
TGG
-5%
CYA
IBC
WIC
CAM
-10%
AUI
DUI
KAT
MFF
WHF
FSI
-15%
-20%
WAM
MLT
WAX
ARG
ALR
CIN
HHV
CTN
AGF
-25%
-5%
0%
5%
10%
15%
20%
NTA GROWTH (% P.A)
TOTAL RETURN VS NTA GROWTH
In theory, we would expect share price gains to reflect NTA growth over the long term. However, increasing
market uncertainty often provides opportunities to invest when there is a disparity between total return and NTA
growth. In the chart below, the LICs that lie furthest away from the line of best fit towards the lower right
quadrant represent these opportunities ie. when NTA growth exceeds total return by a wide margin.
TOTAL RETURN VS FIVE YEAR NTA GROWTH (% P.A)
30%
y = 0.7335x + 0.0614
R² = 0.3624
CDM
25%
TOTAL RETURN LAST 5 YEARS (% P.A)
WAX
20%
IPE
MFF
WAM
ALF
CAM
KAT
WAA
15%
CTN
10%
WIC
BKI MLTWHF
TGG
DUI
FSI
AUI
HHV
DJW
AFI
ALR
PMC
ARG
CYA
CIN
MIR
AMH
IBC
5%
0%
-5%
-10%
-5%
AGF
0%
5%
10%
15%
20%
NTA GROWTH (% P.A)
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
7
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
Domestic Exchange Traded Funds
Exchange Traded Funds are listed, managed, open-ended funds (new units are created when you invest in the
fund) that invest in a portfolio of securities, which may include Australian shares, international shares, fixed
income securities, listed property trusts, commodities, currencies or a combination of asset classes. ETFs can be
classed as conventional, which are backed by physical assets, or synthetic, which rely on financial instruments
like derivatives. Most ETFs in Australia are conventional ETFs that track common indices. The three State Street
Global Advisors funds shown in the table below are passive funds linked to three of the S&P/ASX indexes (the
200 Leaders, the 50 Leaders and the property trusts from the 200 Leaders index). These index funds provide
returns that replicate the performances of the underlying indexes, completely eliminating manager performance
risk in the process. Yields are based on the aggregate yields of the component stocks. Management fees tend to
be low, in the range 0.07 to 0.5%.
Code
Exchange Traded Funds
Price
Dividend
Dividend
Franking
1 Year
Market
Listing
26.06.14
Yield
cps
(%)
Return
Cap.
Date
($)
(%)
(%)
($M)
STW
SPDR ASX200
50.75
4.4
221.0
50.8
13.9
2,337
27.08.01
SFY
SPDR ASX50
53.28
6.1
323.1
36.3
12.5
388
27.08.01
SLF
SPDR ASX200 Prop. Tr.
Fund
9.85
5.5
53.8
0.8
7.3
452
18.02.02
Note; the exchange is AXW not ASX.
Vanguard also has a domestic fund called the Vanguard Australian Shares Index (VAS), which covers the
S&P/ASX 300 index. Australian Index Investments (AII) also offers a range of sector-specific funds targeting
financials (banking, finance and real estate), financials excluding A-REITS, resources (including energy), REITS,
metals and mining, industrials (capital goods and commercial services) and energy. The table below gives the
codes and source indices.
Aii Sector ETF
ASX Code (.AXW)
Aii S&P/ASX 200 Financials
FIN
Aii S&P/ASX 200 Financials x-A-REITS
FIX
Aii S&P/ASX 200 Resources
RSR
Aii S&P/ASX 200 Metals & Mining
MAM
Aii S&P/ASX 200 Industrials
IDD
Aii S&P/ASX 200 Energy
ENY
Relatively new to the Australian market is the ETF issuer BetaShares, which currently offers six ETFs covering
gold bullion, currencies (U.S., U.K. and Euros), Australian resources companies and Australian financials. All the
funds are held with third party custodians so unitholders have no credit risk on BetaShares. BetaShares is also
affiliated with Horizon BetaPro, the largest ETF issuer in Canada with approximately 3bn in funds under
management.
Description
ASX Code (.AXW)
Currency hedged gold bullion tracking the US$ Gold bullion price (physically backed by gold
in the JP Morgan Chase London vault)
QAU
Physical US Dollars held in a custodial bank account with JP Morgan Chase
USD
Physical British pounds held in a custodial bank account with JP Morgan Chase
POU
Physical Euros held in a custodial bank account with JP Morgan Chase
EEU
S&P/ASX 200 Resources Index (backed by physical stock held with RBC Dexia
QRE
S&P/ASX 200 Financials-x-A-REITS index (backed by physical stock held with RBC Dexia).
QFN
Another ETF that may be of interest to local investors is the Russell High Dividend Australian Shares ETF (code
RDV), which tracks the new Russell Australia High Dividend Index.
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
8
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
APPENDIX
In the following section we provide a list of top holdings for the domestic LICs and a chart comparing the NTA and
share price history for LICs which have sufficient history. The charts are in alphabetical order.
Australian Foundation
AFI
Code
CBA
WBC
BHP
WES
NAB
TLS
ANZ
WOW
RIO
OSH
TCL
WPL
AMC
STO
ORG
AMP
BXB
CPU
QBE
APA
$
As at 31 May 2014
Company
% Portfolio
Commonwealth Bank
13.3
Westpac Banking Corporation
12.1
BHP Billiton
10.6
National Australia Bank
6.3
Wesfarmers
6.2
Australia and New Zealand Banking
5.7
Telstra Corporation
5.5
Rio Tinto
4.6
Woolworths
4.2
Oil Search Limited
3.1
Amcor Limited
2.9
Woodside Petroleum
2.7
Transurban Group
2.6
Santos
2.3
Brambles
2.1
Origin Energy
2.1
QBE Insuranc e Group
2.1
AMP
2.0
Computershare
1.7
AGL Energy
1.6
AFI
7
20%
15%
6
10%
5
5%
4
0%
3
-5%
2
-10%
1
Premium/ Discount (RHS)
Price (LHS)
-15%
NTA (LHS)
-20%
Australian Leaders
ALF
Code
ANZ
CBA
RIO
WES
TCL
RMD
QBE
ORG
WBC
AIO
As at 31 March 2014
Company
ANZ Banking Grp Ltd
Commonwealth Bank.
Rio Tinto Limited
Wesfarmers Limited
Transurban Group
ResMed Inc.
QBE Insuranc e Group
Origin Energy
Westpac Banking Corp
Asciano Limited
Jun-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
$
Dec-07
Jun-06
Dec-06
Jun-05
Dec-05
Jun-04
Dec-04
Jun-03
Dec-03
Jun-02
Dec-02
Jun-01
Dec-01
Dec-00
Jun-00
0
ALF
2.0
% Portfolio
8.4
4.9
4.4
3.7
3.5
3.4
3.1
2.8
2.5
2.5
40%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
30%
1.5
20%
10%
1.0
0%
-10%
0.5
-20%
-30%
0.0
Aberdeen Leaders
Jun-14
Oct-13
Feb-14
Jun-13
Oct-12
Feb-13
Jun-12
Feb-12
Oct-11
Jun-11
Oct-10
Feb-11
Jun-10
Oct-09
Feb-10
Jun-09
Feb-09
Oct-08
Jun-08
Oct-07
Feb-08
Jun-07
Oct-06
Feb-07
Jun-06
Feb-06
Oct-05
Jun-05
Oct-04
Feb-05
ALR
$
3.0
20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
15%
2.5
10%
2.0
5%
0%
1.5
-5%
1.0
-10%
0.5
-15%
-20%
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Jun-14
Dec-13
Jun-13
Dec-12
Jun-12
Dec-11
Jun-11
Jun-10
Dec-10
Jun-09
Dec-09
Dec-08
Jun-08
Dec-07
Jun-07
Dec-06
Jun-06
Dec-05
Jun-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
0.0
Jun-01
% Portfolio
10.9
6.6
6.4
6.3
5.6
5.4
4.8
4.5
4.5
4.2
4.1
3.9
3.8
3.8
3.7
3.5
2.9
2.0
1.6
1.5
Dec-00
As at 31 May 2014
Company
BHP Billiton Limited
ANZ Banking Grp Ltd
Commonwealth Bank.
Rio Tinto Limited
Westfield Group
Woolworths Limited
Singapore Telecomm.
AMP Limited
ASX Limited
Woodside Petroleum
CSL Limited
QBE Insuranc e Group
Westpac Banking Corp
SP AusNet
AGL Energy Limited
Coca-Cola Amatil
Computershare Ltd
Cochlear Limited
Oric a Limited
Tatts Group Ltd
Jun-00
ALR
Code
BHP
ANZ
CBA
RIO
WDC
WOW
SGT
AMP
ASX
WPL
CSL
QBE
WBC
SPN
AGK
CCL
CPU
COH
ORI
TTS
Jun-04
Feb-04
-40%
9
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
Listed Investment Companies
AMCIL
AMH
$
30%
1.2
Premium/ Discount (RHS)
Apr-14
Dec-13
Apr-13
Aug-13
Dec-12
Apr-12
Aug-12
Dec-11
Apr-11
Aug-11
Dec-10
Apr-10
Aug-10
Dec-09
Apr-09
Aug-09
Dec-08
20%
8
15%
7
10%
6
5%
5
0%
4
-5%
3
-10%
2
Premium/ Discount (RHS)
1
Price (LHS)
-15%
NTA (LHS)
-20%
$
Jun-14
Dec-13
Jun-13
Jun-12
Dec-12
Dec-11
Jun-11
Jun-10
Dec-10
Dec-09
Jun-09
Jun-08
Dec-08
Dec-07
Dec-06
Jun-06
Dec-05
Jun-05
Jun-04
Dec-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
0
AUI
10
20%
9
15%
8
10%
7
5%
6
5
0%
4
-5%
3
-10%
2
-15%
1
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
0
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Jun-14
Dec-13
Jun-13
Jun-12
Dec-12
Dec-11
Jun-11
Jun-10
Dec-10
Dec-09
Jun-09
Jun-08
Dec-08
Dec-07
Jun-07
Dec-06
Jun-06
Dec-05
Jun-05
Jun-04
Dec-04
Dec-03
Jun-03
Dec-02
Jun-02
-20%
Dec-01
% Portfolio
8.8
7.8
7.7
7.2
6.7
6.0
5.0
4.8
4.3
4.1
2.5
2.2
2.0
2.0
1.9
1.9
1.5
1.5
1.4
1.4
Jun-00
As at 31 May 2014
Company
ANZ Banking Grp Ltd
Commonwealth Bank.
Westpac Banking Corp
BHP Billiton Limited
National Aust. Bank
Wesfarmers Limited
Woodside Petroleum
Rio Tinto Limited
Woolworths Limited
Diversified United
Transurban Group
Origin Energy
CSL Limited
Oil Search Ltd
Brambles Limited
Oric a Limited
Telstra Corporation.
Santos Ltd
Soul Pattinson (W.H)
Amalgamated Holdings
Aug-08
ARG
9
Jun-01
% Portfolio
7.1
6.3
6.0
4.8
4.5
4.5
3.8
3.4
3.1
3.0
2.8
2.8
2.1
1.6
1.4
1.4
1.3
1.3
1.3
1.3
Australian United
AUI
Code
ANZ
CBA
WBC
BHP
NAB
WES
WPL
RIO
WOW
DUI
TCL
ORG
CSL
OSH
BXB
ORI
TLS
STO
SOL
AHD
Aug-05
$
Jun-01
As at 31 May 2014
Company
Westpac Banking Corp
ANZ Banking Grp Ltd
BHP Billiton Limited
Wesfarmers Limited
Commonwealth Bank.
Telstra Corporation.
National Aust. Bank
Milton Corporation
Woolworths Limited
Rio Tinto Limited
Macquarie Group Ltd
Australian United In
Origin Energy
CSL Limited
Woodside Petroleum
Santos Ltd
Ramsay Health Care
AMP Limited
Computershare Ltd
Twenty-First FOX Inc
Apr-08
-30%
Dec-07
0.0
Apr-07
-20%
Aug-07
0.2
Dec-06
-10%
Apr-06
0.4
Aug-06
0%
Dec-05
0.6
Apr-05
10%
Dec-04
0.8
Apr-04
20%
Jun-00
ARG
Code
WBC
ANZ
BHP
WES
CBA
TLS
NAB
MLT
WOW
RIO
MQG
AUI
ORG
CSL
WPL
STO
RHC
AMP
CPU
FOX
NTA (LHS)
Jun-07
Argo Investments
Price (LHS)
1.0
Aug-04
% Portfolio
8.5
7.4
7.4
5.4
4.8
4.6
4.1
4.1
4.1
3.2
2.9
2.8
2.8
2.5
2.2
2.1
2.0
1.9
1.9
1.9
Dec-03
As at 31 May 2014
Company
Oil Search Ltd
Commonwealth Bank.
BHP Billiton Limited
Westpac Banking Corp
Santos Ltd
Transurban Group
National Aust. Bank
Brambles Limited
Telstra Corporation.
Equity Trustees
QBE Insuranc e Group
Qube Holdings Ltd
AMP Limited
Tox Free Solutions
Tassal Group Limited
CSL Limited
Incitec Pivot
Brickworks Limited
Computershare Ltd
SAI Global Limited
Dec-00
AMH
Code
OSH
CBA
BHP
WBC
STO
TCL
NAB
BXB
TLS
EQT
QBE
QUB
AMP
TOX
TGR
CSL
IPL
BKW
CPU
SAI
Dec-00
27 June 2014
10
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
BKI Investment
BKI
Code
CBA
NAB
WBC
BHP
TLS
NHC
ANZ
WES
WOW
TPM
APA
AGK
WPL
ALQ
IAG
SUN
TCL
ARP
BOQ
IVC
As at 31 May 2014
Company
Commonwealth Bank
National Australia Bank
Westpac Banking Corp
BHP Billiton
Telstra Corporation
New Hope Corporation
ANZ Banking Group
Wesfarmers Limited
Woolworths Limited
TPG Telecom Limited
APA Group
AGL Energy Limited
Woodside Petroluem
ALS Limited
Insuranc e Australia Group
Suncorp Group Limited
Transurban Group
ARB Corporation Limited
Bank of Queensland
Invocare Limited
$
BKI
2.0
% Portfolio
9.5
8.9
8.0
6.1
5.4
5.1
4.8
4.5
3.8
3.0
2.3
2.2
2.1
2.0
1.7
1.4
1.3
1.3
1.2
1.2
20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
1.8
15%
1.6
10%
1.4
5%
1.2
1.0
0%
0.8
-5%
0.6
-10%
0.4
-15%
0.2
Clime Capital
Cadence Capital
CDM
Code
MQG
HGG
MLB
NAB
ANZ
IIN
BOQ
CBA
RFG
LNG
BSL
PPT
FXL
SDG
RIO
FLT
GMA
INA
SUN
Apr-14
Dec-13
Apr-13
Aug-13
Dec-12
Apr-12
Aug-12
Dec-11
Apr-11
Aug-11
Dec-10
Apr-10
Aug-10
Dec-09
Apr-09
Aug-09
Dec-08
Apr-08
Aug-08
Dec-07
Apr-07
Aug-07
Dec-06
Apr-06
Aug-06
Dec-05
Apr-05
Aug-05
Dec-04
Apr-04
Premium/ Discount (RHS)
As at 31 May 2014
Company
% Portfolio
Macquarie Group Limited
7.9
Henderson Group Plc
7.8
Melbourne IT Ltd
4.3
National Australia Bank Ltd
4.3
4.2
Australia & New Zealand Banking Gr
IInet Limited
3.2
Bank of Queensland Ltd
3.1
Commonwealth Bank of Australia
3.0
Retail Food Group
2.9
Liquefied Natural Gas Limited
2.8
Bluescope Steel Ltd
2.6
Perpetual Limited
2.1
Flexigroup Ltd
2.0
Sunland Group Ltd
1.6
Rio Tinto Ltd
1.5
Flight Centre Travel Group Ltd
1.3
1.3
Genworth Mortgage Insurance Aust
Ingenia Communities Group ltd
1.2
Suncorp Group Ltd
1.1
Price (LHS)
NTA (LHS)
$
Jan-14
May-14
Sep-13
Jan-13
May-13
Sep-12
Jan-12
May-12
Sep-11
Jan-11
May-11
-40%
Sep-10
0.0
Jan-10
-30%
May-10
0.2
Sep-09
-20%
May-09
0.4
Jan-09
-10%
Sep-08
0.6
May-08
0%
Jan-08
0.8
Sep-07
10%
May-07
1.0
Jan-07
20%
Sep-06
1.2
May-06
30%
Jan-06
1.4
Sep-05
2.9
40%
May-05
Telstra Corporation Limited
% Portfolio
5.9
5.1
4.0
3.9
3.6
3.6
3.5
3.5
3.5
Jan-05
TLS
CAM
Sep-04
As at 31 May 2014
Company
BHP Billiton Limited
ANZ Banking Group Limited
Multiplex Convertible Note
Brickworks Limited
Woolworths Limited
National Australia Bank Notes
Macquarie Bank Notes
The Reject Shop Limited
SMS Management & Technology
$
1.6
May-04
CAM
Code
BHP
ANZ
MXGCA
BKW
WOW
NAB
MQGPA
TRS
SMX
Aug-04
-20%
Dec-03
0.0
CDM
3.0
60%
2.8
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
2.6
40%
2.4
2.2
2.0
20%
1.8
1.6
0%
1.4
1.2
1.0
-20%
0.8
0.6
-40%
0.4
0.2
0.0
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Jun-14
Mar-14
Dec-13
Jun-13
Sep-13
Mar-13
Dec-12
Sep-12
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
Jun-10
Sep-10
Mar-10
Dec-09
Jun-09
Sep-09
Mar-09
Dec-08
Sep-08
Jun-08
Mar-08
Dec-07
Sep-07
Jun-07
Mar-07
Dec-06
-60%
11
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
Carlton Investments
CIN
Code
AHD
NAB
WBC
CBA
ANZ
BHP
WES
TLS
AGK
PPT
BOQ
BEN
ORI
GOW
ORG
JHC
AMC
STO
LLC
RIO
As at 31 March 2014
Company
Amalgamated Holdings
National Australia Bank
Westpac Bank*
Commonwealth Bank
ANZ Bank
BHP Billiton
Wesfarmers
Telstra
AGL
Perpetual
Bank of Queensland
Bendigo & Adelaide Bank
Oric a
Gowing Bros
Origin Energy
James Hardie
Amcor
Santos
Lend Lease
Rio Tinto
$
CIN
35
% Portfolio
34.5
9.1
7.8
5.5
4.1
3.3
3.3
2.7
2.6
2.6
2.1
1.6
1.5
1.4
1.3
1.2
1.1
1.1
0.8
0.7
30%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
30
20%
25
10%
20
0%
15
-10%
10
-20%
5
Contango Microcap
CTN
Code
SGH
TGS
VRL
MYX
CWP
PRT
SFW
VLW
BTT
GBT
SYR
IPP
AUB
AHE
GEM
NHF
EPW
ASB
INA
SGF
As at 31 May 2014
Company
Slater & Gordon Limited
Tiger Resources Limited
Village Roadshow Limited
Mayne Pharma Group
Cedar Woods Properties
Prime Media Group Limited
SFG Australia Limited
Villa World Limited
BT Investment Mgmnt Ltd
GBST Holdings Limited
Syrah Resources
Iproperty Group
Austbrokers Holdings
Automotive Holdings
G8 Education Limited
NIB Holdings Limited
ERM Power Limited
Austal Limited
Ingenia Communities
SG Fleet Group
$
Jun-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Jun-06
Dec-06
Jun-05
Dec-05
Jun-04
Dec-04
Jun-03
Dec-03
Jun-02
Dec-02
Jun-01
Dec-01
Jun-00
-30%
Dec-00
0
CTN
50%
3.0
% Portfolio
3.6
2.9
2.9
2.8
2.7
2.7
2.5
2.5
2.4
2.3
2.3
2.2
2.2
2.2
2.1
2.1
2.1
2.0
1.8
1.8
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
40%
2.5
30%
20%
2.0
10%
0%
1.5
-10%
1.0
-20%
-30%
0.5
-40%
0.0
Century Australia
CYA
Code
BHP
WBC
ANZ
NAB
CBA
TLS
MQG
WPL
AMP
QBE
As at 31 May 2014
Company
BHP Billiton Limited
Westpac Banking Corp
ANZ Banking Grp Ltd
National Australia Bank
Commonwealth Bank
Telstra Corporation
Macquarie Group Ltd
Woodside Petroleum
AMP Limited
QBE Insuranc e Group
$
Mar-14
Jul-13
Nov-13
Mar-13
Nov-12
Jul-12
Mar-12
Jul-11
Nov-11
Mar-11
Jul-10
Nov-10
Mar-10
Nov-09
Jul-09
Mar-09
Jul-08
Nov-08
Mar-08
Nov-07
Jul-07
Mar-07
Jul-06
Nov-06
Mar-06
Jul-05
Nov-05
Mar-05
Nov-04
Jul-04
Mar-04
-50%
CYA
2.0
% Portfolio
9.7
8.2
7.4
6.8
6.6
5.9
3.4
3.0
2.7
2.6
30%
Premium/ Discount (RHS)
1.8
Price (LHS)
NTA (LHS)
20%
1.6
1.4
10%
1.2
1.0
0%
0.8
-10%
0.6
0.4
-20%
0.2
-30%
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Apr-14
Dec-13
Aug-13
Apr-13
Dec-12
Apr-12
Aug-12
Dec-11
Apr-11
Aug-11
Dec-10
Aug-10
Apr-10
Dec-09
Apr-09
Aug-09
Dec-08
Aug-08
Apr-08
Dec-07
Apr-07
Aug-07
Dec-06
Apr-06
Aug-06
Dec-05
Aug-05
Apr-05
Dec-04
Apr-04
Aug-04
0.0
12
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
Djerriwarrh
DJW
Code
BHP
WBC
TLS
CBA
NAB
ANZ
OSH
WPL
WES
RIO
AMP
STO
WOW
TCL
BXB
APA
ORG
SUN
QBE
AGK
$
As at 31 May 2014
Company
% Portfolio
BHP Billiton
10.0
Westpac Banking Corporation
7.2
Telstra Corporation
6.2
Commonwealth Bank of Australia
6.2
National Australia Bank
5.8
5.6
Australia & New Zealand Banking Gr
Oil Search
4.6
Woodside Petroleum
4.2
Wesfarmers
3.3
Rio Tinto
2.9
AMP
2.6
Santos
2.5
Woolworths
2.5
Transurban Group
2.4
Brambles
2.1
APA Group
2.1
Origin Energy
2.0
Suncorp Group
1.8
QBE Insuranc e Group
1.6
AGL Energy
1.6
DJW
7
40%
6
30%
5
20%
4
10%
3
0%
2
-10%
1
-20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
Diversified United
Jun-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Jun-06
Dec-06
Jun-05
Dec-05
Jun-04
Dec-04
Jun-03
Dec-03
Jun-02
Dec-02
Jun-01
DUI
5
30%
20%
4
10%
3
0%
2
-10%
1
-20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
0
Jun-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Jun-10
Dec-10
Jun-09
Dec-09
Jun-08
Dec-08
Jun-07
Dec-07
Jun-06
Dec-06
Jun-05
Dec-05
Jun-04
Dec-04
Jun-03
Dec-03
Jun-02
Dec-02
Jun-01
-30%
Dec-01
% Portfolio
9.0
8.8
8.6
8.2
5.8
5.6
5.5
4.5
3.8
3.6
2.7
2.4
2.0
2.0
1.8
1.8
1.7
1.7
1.5
1.4
Dec-00
As at 31 May 2014
Company
Commonwealth Bank of Australia
ANZ Banking Group Ltd
Westpac Banking Corporation
BHP Billiton Ltd
Woodside Petroleum Ltd
National Australia Bank Ltd
CSL Ltd
Rio Tinto Ltd
Transurban Group
Woolworths Ltd
Wesfarmers Ltd
Origin Energy Ltd
Washington H Soul Pattinson
Oil Search Ltd
AMP Ltd
Westfield Group
QBE Insuranc e Group Ltd
Mystate Ltd
Asciano Ltd
Computershare Ltd
$
Jun-00
DUI
Code
CBA
ANZ
WBC
BHP
WPL
NAB
CSL
RIO
TCL
WOW
WES
ORG
SOL
OSH
AMP
WDC
QBE
MYS
AIO
CPU
Dec-01
Jun-00
-30%
Dec-00
0
Ironbark Capital
% Portfolio
10.1
10.1
$
PCAPA/
CBAPA/ CBA Perls III & Perls V & Perls VI
PC
9.6
CBA
WBC
ORGHA
6.9
5.6
4.6
0.6
ANZPA/
ANZ - Conv. Pref.
PB
4.1
0.5
ANZ
SUNPC
IAGPC
NAB
SVWPA
IANG
CTXHA
NABPA
LEPHC
4.0
3.9
3.5
3.3
3.3
3.0
2.4
2.4
2.3
10%
0.3
-10%
0.2
-20%
0.1
Premium/ Discount (RHS)
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Mar-14
Jul-13
Nov-13
Mar-13
Jul-12
Nov-12
Mar-12
Nov-11
Jul-11
Mar-11
Nov-10
Jul-10
Mar-10
Nov-09
Jul-09
Mar-09
Jul-08
Nov-08
Mar-08
Jul-07
Nov-07
Mar-07
Jul-06
Mar-06
Jul-05
Nov-05
Mar-05
Jul-04
1.4
NTA (LHS)
-30%
Nov-04
1.5
Price (LHS)
0.0
Mar-04
2.0
Nov-06
2.1
0%
0.4
Nov-03
SCP
Shopping Centres Australasia
BENPC/
Bendigo Bank - Conv. Pref.
PD
BOQPD BOQ - Conv. Pref.
20%
Jul-03
WCTPA/
Westpac - Conv. Pref.
WBCPC
0.7
Mar-03
ANZ Banking Group
Suncorp - Conv. Pref.
IAG - Conv. Pref.
National Australia Bank
Seven - Conv. Pref.
IAG - Perp. Reset Exc h. Notes
Caltex - Subordinated Notes
NAB - Conv. Pref.
ALE Property - Unsecured Notes
30%
Nov-02
Commonwealth Bank
Westpac Banking
Origin - Subordinated Notes
IBC
0.8
Jul-02
As at 31 December 2013
Company
Telstra Corp
BHP Billiton Limited
Mar-02
IBC
Code
TLS
BHP
13
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
Katana
$
KAT
1.6
40%
Premium/ Discount (RHS)
MIR
Code
JHX
OSH
EQT
ALQ
TGR
QUB
ANN
TOX
AWC
PPT
IVC
IRE
SEK
BGL
FBU
IPP
TOL
CCL
SXY
FNP
As at 31 May 2014
Company
James Hardie Industries
Oil Search
Equity Trustees
ALS
Tassal Group
Qube Holdings
Ansell
Tox Free Solutions
Alumina
Perpetual
InvoCare
IRESS
Seek
BigAir Group
Fletcher Building
iProperty Group
Toll Holdings
Coc a-Cola Amatil
Senex Energy
Freedom Foods Group
Jun-14
Mar-14
Dec-13
Sep-13
Jun-13
Mar-13
Dec-12
Jun-12
Sep-12
Mar-12
Dec-11
Jun-11
Sep-11
Mar-11
Dec-10
Sep-09
Sep-08
Dec-07
Dec-06
Sep-06
Jun-10
-40%
Sep-10
0.0
Mar-10
-30%
Dec-09
0.2
Jun-09
-20%
Mar-09
0.4
Dec-08
-10%
Jun-08
0.6
Mar-08
0%
Jun-07
0.8
Sep-07
10%
Mar-07
1.0
Jun-06
20%
Mar-06
1.2
$
% Portfolio
4.5
3.9
3.9
3.7
3.3
3.0
2.9
2.9
2.3
2.3
2.2
2.2
2.2
2.0
1.9
1.8
1.8
1.7
1.6
1.6
NTA (LHS)
30%
Dec-05
Mirrabooka Investments
Price (LHS)
1.4
MIR
3.0
30%
2.5
20%
2.0
10%
1.5
0%
1.0
-10%
-20%
0.5
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
-30%
Milton Corp.
MLT
Code
WBC
CBA
NAB
SOL
BHP
WES
WOW
ALQ
ANZ
BOQ
TLS
BEN
PPT
BKW
CSL
SUN
AGK
WPL
RIO
APE
As at 31 May 2014
Company
Westpac Banking Corporation
Commonwealth Bank
National Australia Bank
W H Soul Pattinson
BHP Billiton Limited
Wesfarmers Limited
Woolworths Limited
ALS Limited
ANZ Banking Group
Bank of Queensland
Telstra Corporation
Bendigo and Adelaide
Perpetual Limited
Brickworks Limited
CSL Limited
Suncorp Group
AGL Energy
Woodside Petroleum
Rio Tinto
AP Eagers Limited
$
Jun-14
Oct-13
Feb-14
Jun-13
Feb-13
Oct-12
Jun-12
Feb-12
Oct-11
Jun-11
Oct-10
Feb-11
Jun-10
Feb-10
Oct-09
Jun-09
Feb-09
Oct-08
Jun-08
Oct-07
Feb-08
Jun-07
Feb-07
Oct-06
Jun-06
Feb-06
Oct-05
Jun-05
Oct-04
Feb-05
Jun-04
Feb-04
Oct-03
Jun-03
Feb-03
Oct-02
Jun-02
Feb-02
Oct-01
Jun-01
0.0
MLT
6
% Portfolio
13.0
8.9
5.3
4.9
4.5
4.5
3.7
3.6
3.6
3.2
2.6
2.4
2.3
1.6
1.5
1.5
1.3
1.3
1.2
1.1
20%
15%
5
10%
4
5%
3
0%
-5%
2
-10%
1
-15%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
-20%
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Jun-14
Jun-13
Dec-13
Dec-12
Jun-12
Dec-11
Jun-11
Jun-10
Dec-10
Dec-09
Jun-09
Dec-08
Jun-08
Dec-07
Jun-07
Jun-06
Dec-06
Jun-05
Dec-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
Jun-01
Jun-00
Dec-00
0
14
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
Listed Investment Companies
$
WAA
1.6
40%
Premium/ Discount (RHS)
WAM Capital
WAM
Code
CBAPA
CYA
WBCPB
FXJ
WIC
ANZPB
IPE
MQA
DLX
SGH
IIN
HIL
TGR
AAD
TNE
DJS
AHE
CGF
SFW
MTU
As at 31 May 2014
Company
CBA Perpetual - PERLS V
Century Australia
WBC Stapled Preferred Sec urity II
Fairfax Media Limited
Westoz Investment
ANZ – CPS1
IPE Limited
Macquarie Atlas Roads Group
DuluxGroup Limited
Slater & Gordon Limited
iiNet Limited
Hills Limited
Tassal Group Limited
Ardent Leisure Group
Tec hnology One Limited
David Jones Limited
Automotive Holdings
Challenger Limited
SFG Australia Limited
M2 Group Limited
Price (LHS)
NTA (LHS)
0%
0.6
-10%
0.4
-20%
0.2
-30%
0.0
-40%
Jul-10
Jul-09
Nov-08
Jul-08
Jul-07
Jul-06
Jul-05
Nov-05
Jul-04
$
Mar-10
0.8
Nov-09
10%
Mar-09
1.0
Mar-08
20%
Mar-07
1.2
Nov-06
30%
Mar-06
1.4
Mar-05
As at 31 May 2014
Company
% Portfolio
4.4
Century Australia Investments Limit
CBA Perpetual PERLS V
4.4
3.4
Westoz Investment Company Limite
IPE Limited
3.2
Macquarie Atlas Roads Group
3.1
Hills Limited
2.9
Tassal Group Limited
2.8
David Jones Limited
2.5
2.3
ANZ Convertible Preferenc e Share Challenger Limited
2.2
2.2
M2 Telecommunications Group Limit
Coventry Group Limited
2.1
2.1
Genworth Mortgage Insuranc e Aust
Brickworks Limited
2.0
Fletcher Building Limited
2.0
Credit Corp Group Limited
1.9
Hunter Hall Global Value Limited
1.9
Ironbark Capital Limited
1.8
WBC Stapled Preferred Sec urity II
1.8
Treasury Wine Estates Limited
1.5
Mar-04
WAA
Code
CYA
CBAPA
WIC
IPE
MQA
HIL
TGR
DJS
ANZPB
CGF
MTU
CYG
GMA
BKW
FBU
CCP
HHV
IBC
WBCPB
TWE
Nov-07
WAM Active
Nov-04
27 June 2014
WAM
2.5
% Portfolio
3.8
2.3
1.7
1.7
1.7
1.6
1.6
1.5
1.5
1.4
1.4
1.4
1.4
1.4
1.2
1.2
1.2
1.1
1.1
1.1
50%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
40%
2.0
30%
20%
1.5
10%
0%
1.0
-10%
-20%
0.5
-30%
-40%
0.0
$
Jun-14
Jun-13
Dec-13
Dec-12
Jun-12
Jun-11
Dec-11
Dec-10
Jun-10
Dec-09
Jun-09
Dec-08
Jun-08
Dec-07
Jun-07
Jun-06
Dec-06
Jun-05
Dec-05
Jun-04
Dec-04
Jun-03
Dec-03
Dec-02
Jun-02
Dec-01
Jun-01
Jun-00
WAX
40%
1.6
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Apr-14
Dec-13
Apr-13
Aug-13
Dec-12
Apr-12
Aug-12
Dec-11
Aug-11
Apr-11
Dec-10
Apr-10
Aug-10
Dec-09
Apr-09
-40%
Aug-09
0.0
Dec-08
-30%
Apr-08
0.2
Aug-08
-20%
Dec-07
0.4
Aug-07
-10%
Apr-07
0.6
Dec-06
0%
Aug-06
0.8
Apr-06
10%
Dec-05
1.0
Apr-05
20%
Aug-05
1.2
Dec-04
30%
Apr-04
1.4
Aug-04
As at 31 May 2014
Company
% Portfolio
3.8
CBA Perpetual Exc Resale Listed Se
Fairfax Media Limited
3.4
DuluxGroup Limited
3.0
Slater & Gordon Limited
2.9
iiNet Limited
2.8
Ardent Leisure Group
2.7
Tec hnology One Limited
2.5
Automotive Holdings Group Limited
2.4
SFG Australia Limited
2.1
Mantra Group
2.1
2.1
Clime Investment Management Limit
CSG Limited
2.0
Amalgamated Holdings Limited
2.0
Energy Developments Limited
2.0
Voc ation Limited
1.8
1.8
ANZ Convertible Preferenc e Share Equity Trustees Limited
1.8
Voc us Communications Limited
1.7
WBC Stapled Preferred Sec urity II
1.7
Nearmap Limited
1.7
Aug-03
WAX
Code
CBAPA
FXJ
DLX
SGH
IIN
AAD
TNE
AHE
SFW
MTR
CIW
CSV
AHD
ENE
VET
ANZPB
EQT
VOC
WBCPB
NEA
Dec-03
WAM Research
Dec-00
-50%
15
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
Whitefield Limited
$
WHF
7.0
Westoz Investment
WIC
Code
AQA
FRI
AHE
CWP
MML
MGX
SEA
AGO
SFR
FWD
NTA (LHS)
15%
10%
5.0
5%
4.0
0%
3.0
-5%
2.0
-10%
1.0
-15%
Jun-14
Oct-13
Feb-14
Jun-13
Oct-12
Jun-12
Feb-13
Oct-11
Feb-12
Jun-11
Oct-10
Feb-11
Jun-10
Oct-09
Jun-09
Feb-10
Oct-08
Feb-09
Jun-08
Oct-07
Feb-08
Jun-07
Oct-06
Jun-06
Feb-07
Oct-05
Feb-06
Jun-05
Oct-04
Feb-05
Jun-04
Oct-03
Jun-03
Feb-04
Oct-02
Feb-03
-20%
Jun-02
0.0
$
As at 31 May 2014
Company
% Portfolio
Aquila Resources Limited
12.0
Finbar Group Limited
9.0
Automotive Holdings Group Limited
9.0
Cedar Woods Properties Limited
7.0
Medusa Mining Limited
7.0
Mount Gibson Iron Limited
6.0
Sundance Energy Australia Limited
5.0
Atlas Iron Limited
3.0
Sandfire Resources NL
3.0
Fleetwood Corporation Limited
2.0
Price (LHS)
6.0
Oct-01
% Portfolio
11.0
8.9
7.7
6.6
5.6
5.2
3.9
3.6
3.1
2.7
2.4
2.1
1.9
1.8
1.7
1.6
1.6
1.4
1.4
1.2
20%
Premium/ Discount (RHS)
Feb-02
As at 31 May 2014
Company
Commonwealth Bank Of Australia
Westpac Banking Corporation
ANZ Banking Group Limited
National Australia Bank Limited
Telstra Corporation Limited
Macquarie Group Limited
Woolworths Limited
Wesfarmers Limited
Computershare Limited
Brambles Limited
Crown Resorts Limited
CSL Limited
AMP Limited
QBE Insuranc e Group
Twenty-First Century Fox Inc.
Seven Group Holdings Limited
Amc or Limited
Suncorp Limited
InvoCare Limited
Macquarie Atlas Roads Group
Jun-01
WHF
Code
CBA
WBC
ANZ
NAB
TLS
MQG
WOW
WES
CPU
BXB
CWN
CSL
AMP
QBE
FOXA
SVW
AMC
SUN
IVC
MQA
WIC
2.0
40%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
30%
20%
1.5
10%
1.0
0%
-10%
0.5
-20%
-30%
-40%
Flagship InvestmentS
$
May-14
Mar-14
Jan-14
Nov-13
Sep-13
Jul-13
May-13
Jan-13
Mar-13
Nov-12
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Jul-11
Sep-11
Mar-11
May-11
Jan-11
Nov-10
Sep-10
Jul-10
May-10
Jan-10
Mar-10
Nov-09
Sep-09
0.0
FSI
3.0
40%
Premium/ Discount (RHS)
FSI
Code
SEK
CBA
CRZ
TLS
REA
31-Mar-14
Company
SEEK
Commonwealth Bank of Australia
Carsales.com
Telstra Corporation
REA Group
% Portfolio
11.2
7.1
6.2
6.0
5.9
Price (LHS)
NTA (LHS)
30%
2.5
20%
2.0
10%
1.5
0%
-10%
1.0
-20%
0.5
-30%
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Jun-14
Jun-13
Dec-13
Jun-12
Dec-12
Jun-11
Dec-11
Dec-10
Jun-10
Jun-09
Dec-09
Dec-08
Jun-08
Dec-07
Jun-07
Dec-06
Jun-06
Dec-05
Jun-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
Jun-01
-40%
Dec-00
0.0
16
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
THEMATIC AND GLOBAL LICS
Hunter Hall Global
$
HHV
2.0
40%
NB: NTA is after tax
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
30%
1.5
20%
10%
1.0
0%
-10%
0.5
-20%
-30%
Platinum Capital
$
Mar-14
Jul-13
Nov-13
Mar-13
Jul-12
Nov-12
Mar-12
Jul-11
Nov-11
Mar-11
Jul-10
Nov-10
Mar-10
Jul-09
Nov-09
Mar-09
Jul-08
Nov-08
Mar-08
Jul-07
Nov-07
Mar-07
Jul-06
Nov-06
Mar-06
Jul-05
Nov-05
Mar-05
Jul-04
Nov-04
-40%
Mar-04
0.0
PMC
3.0
80%
2.5
60%
2.0
40%
1.5
20%
1.0
0%
NB: NTA is after tax
0.5
-20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
0.0
$
Jun-14
Dec-13
Jun-13
Jun-12
Dec-12
Jun-11
Dec-11
Dec-10
Jun-10
Dec-09
Jun-09
Jun-08
Dec-08
Jun-07
Dec-07
Dec-06
Jun-06
Dec-05
Jun-05
Jun-04
Dec-04
Jun-03
Dec-03
Jun-02
Dec-02
Dec-01
Jun-01
Jun-00
Templeton Global
Dec-00
-40%
TGG
30%
2.5
20%
2.0
10%
1.5
0%
1.0
-10%
0.5
-20%
Premium/ Discount (RHS)
Price (LHS)
NTA (LHS)
0.0
Jun-14
Dec-13
Jun-13
Jun-12
Dec-12
Jun-11
Dec-11
Dec-10
Jun-10
Dec-09
Jun-09
Jun-08
Dec-08
Jun-07
Dec-07
Dec-06
Jun-06
Dec-05
Jun-05
Jun-04
Dec-04
Jun-03
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
Dec-03
Jun-02
Dec-02
Dec-01
Jun-01
Jun-00
Dec-00
-30%
17
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.
27 June 2014
Listed Investment Companies
QUANTITATIVE RESEARCH REPORT – PATERSONS SECURITIES LIMITED
18
All information and advice is confidential and for the private information of the person to whom it is provided and is provided without any responsibility
or liability on any account whatsoever on the part of this firm or any member or employee thereof.

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